Eps 41: what to do with million dollar?
— The too lazy to register an account podcast
If you have student loan debt, you can refinance it for a lower interest rate through Earnest .
Because student loan interest is usually relatively low, 2-4% and the average return in the stock market is 7%, you can make more money investing than you are paying in interest.
If you have credit card debt, make a plan to pay it off.
| Seed data: | Link 1, Link 2 |
|---|---|
| Host image: | StyleGAN neural net |
| Content creation: | GPT-3.5, |
Host
Ernest Price
Podcast Content
If you have one spouse, one strategy is to live on one income and save for the other, but remember that when one spouse dies, the survivor is left with a much lower income. If you are lucky enough to have half a million dollars, you can invest it to serve it well, and maybe even continue to grow over time. At first glance, it may not be a lot of money to make ends meet, especially in the first few years of your life with only $2,000 a month.
Remember that you can opt for any of the above without having to spend a chunk of your million. You may even be lucky if your $1 million buys you your dream home, let alone fund your retirement.
Let's take a look at some of the factors that decide whether you can afford it or not. If it costs a million dollars to buy a house in a city like Toronto or Vancouver, there are many lucky Canadians who can afford not only the price tag, but also their retirement. This is all the more true in Toronto, where average house prices stand at $800,000 in 2019.
If you can earn at least $200,000 a year after tax and invest the difference, saving $1 million in 5 years is a legitimate option. Let's take a big step and look at some of the different options available to those who can live on $40,000 a year. If you have earned $200.00 after tax, have a look at our guide on how to reach $1 million without paying tax.
To cover the number of years it will take you to save a million dollars, I would like to share some of the investments that helped me get there in the five years from 2010 to 2015. All in all, we currently have enough money to pay for two girls in college, with only debt to cover the last few years of our mortgage. Don't miss our guide to what to do with the $300,000 you will inherit.
I began my journey to financial independence in 2010, saving $1.25 million to achieve it by the age of 30. If I approach the $1 million milestone, I will retire in nine years when I turn 55 in 2027.
I'm often asked how to do this, so I decided to outline some variables and scenarios that affect how quickly you can save a million dollars depending on your income. How can anyone else do it, and
As it turns out, your $1 million savings goal isn't The amount of money you have set aside would allow you to retire early. It depends on how much money I earn, how many years I work and how much I earn today. I have saved and expanded my investments. Since one cannot know whether one is lucky, one should position oneself in such a way that one can also take advantage of the luck. If it does not, investment will continue to grow over the long term.
Let's look back to the day when I was able to save $1 million in 5 years, I went 2.26%. I saved and invested an average of $144,500 a year in that time, which is a lot, but it was a good five-year investment, not a long-term investment.
Let's take a look at some of the key strategies that savvy retirees use to stretch a million dollars through their retirement years. Keep in mind that you should save money on the stock market, as returns are often very low and you are likely to lose money to inflation, so invest as much of your money as you can in it. A retiree who invests $1 million in a traditional portfolio and makes annual withdrawals has the option of buying an annuity at 1.5% per year for the rest of their life.
One technique is to buy an instant annuity, which is converted into a pension lump sum. There are other options, such as investing the money in a diversified portfolio of shares, bonds, mutual funds, and other investments, and then deducting a fixed percentage of the portfolio each year to pay the cost of living.